Market Update & Important Indicators:
Major indexes edged higher, notching weekly gains as some investor fears about an escalation in trade disputes abated. The Dow Jones Industrial Average rose 8.68 points, or less than 0.1%, to 26154.67. The S&P 500 ticked up 0.80 points, or less than 0.1%, to 2905.98, a day after the index notched its biggest gain in two weeks on Thursday. The Nasdaq Composite slipped 3.67 points, or less than 0.1%, to 8010.04, though it joined the other two major indexes in posting weekly gains. One driver of stocks' advances this week is technology companies, which had been one of the prior week's biggest decliners. This week, technology companies in the S&P 500 rose 1.8%, with the PHLX Semiconductor Index up 1.1%. Apple shares have risen 1.1% this week after the company announced a new lineup of mobile devices. Consumer companies declined Friday after U.S. retail-sales data showed American consumers reined in their spending in August, taking a breather after very strong sales growth in July. The data comes as U.S. wages rose in August, with private-sector hourly wages growing 2.9% from a year earlier, the fastest pace since mid-2009. The US gold price retreated 0.6% to 1193.10 US$/oz.
The Stoxx Europe 600 index ended up 0.35% at 377.85, as a weaker euro against the dollar and temporarily fading concerns about U.S.-China trade tensions encouraged buyers. Thursday's relatively upbeat assessment from the European Central Bank continues to aid sentiment. Investec is the pan-European index's biggest riser, up 8.4% after outlining plans to demerge its asset-management business. Auto-related and engineering stocks are broadly higher, helping Germany's DAX to outperform, ending up 0.6%. France's CAC 40 closes up 0.5%, while the U.K.'s FTSE 100 finishes 0.3% higher. Italy's FTSE MIB is up 0.2%, Spain's Ibex 35 up 0.4%.
Asian stocks were broadly higher, with benchmarks in Japan, Hong Kong and South Korea up 1% or more thanks to support from companies in the technology and consumer discretionary sectors. Japan's Nikkei closed at its highest level since early February, ending its best week since July. Shanghai stocks edged down 0.2% however, notching a third straight weekly decline. Investment in factories, railways and other projects in China so far this year grew at its slowest pace in more than a quarter-century, data showed.
Australian stocks rebounded after sliding the day before, allowing the ASX 200 to record a modest gain for the week. The index climbed 0.6% today to 6165.3, ending 0.35% higher for the week. The day's gain was only the second for the benchmark index in more than two weeks. The health-care sector bounced 1.7%, nearly reversing yesterday's skid, with drug maker CSL rebounding 2.1%. Meanwhile, materials advanced 1% and consumer stocks edged lower.
Base metal prices were mixed for Friday on the London Metal Exchange. The biggest movers were aluminium down 1.1% to 2,007/t, and zinc that fell 1.2% to close at 2,316/t. The 3-month copper contract slipped 1% to 5,951/t. Lead and nickel was up 0.3% and 0.4% respectively, to finish at 2,030/t and 12,574/t.
In this issue:
Myanmar Metals (MYL) | Compelling starter pit | SPEC BUY
Market Cap $85m | Target Price $0.20 | Current Price $0.06
Myanmar Metals (MYL) released a Scoping Study for a starter pit in the China Lode of the Bawdwin Project (51% MYL). This 13 year, 250m deep starter pit provides compelling economics and would be the envy of most base metal projects globally. We estimate the 1.8Mtpa plant will produce 158ktpa Zn equivalent at minus ~US$0.45/lb payable Zn all-in sustaining costs (after credits) and generate average Revenue and EBITDA of US$395m and US$165m respectively (100% basis). It is important to note that the China Lode open pit consumes only 26% of the current resource. We believe the PFS (due Q1 2019) will incorporate additional open pits and underground mines from the neighbouring Shan and Meingtha lodes to produce a +25-year mine life. In addition, there is a high likelihood of further discoveries along the 8-10km of largely unexplored prospective strike in the Bawdwin Region. We maintain a SPEC BUY recommendation with a revised target price of $0.20/sh (from $0.22/sh).
Recent Contacts & Presentations:
FAR (FAR), Ramelius Resources (RMS), Strandline (STA), Dimerix (DXB), Aspire Mining (AKM), Austal Limited (ASB), Macmahon Holdings Limited (MAH), Nickle Mines Limited (NIC), Carnarvon Petroleum Limited (CVN), Prodigy Gold (PRX), Ausdrill Ltd (ASL), Bionomics Ltd (BNO), Gold Road Resources (GOR), Encounter Resources Ltd. (ENR), OZ Minerals Limited (OZL), Melbana Energy (MAY), Botanix Pharmaceuticals Ltd (BOT), Novo Litio (NLI), Classic Minerals (CLZ), OZ Minerals (OZL), Saturn Metals (STN), Antipa Minerals (AZY), SRG Ltd (SRG) Bowen Coking Coal (BCB), Birimian (BGS), Breaker Resources (BRB), Galena Mining (G1A), Valmec (VMX),Bryah Resources (BYH), Calima Energy (CE1) Genesis Minerals (GMD), Agrimin (AMN), Magnetic Resources (MAU), Core Exploration (CXO), Marindi Metals (MZN), MOD Resources (MOD), Santos (STO), Adriatic Metals (ADT) Bio–Gene Technology (BGT), Walkabout Resources (WKT), Triton Minerals (TON), Calima Energy (CE1)